Duxton Farms to sell Timberscombe aggregation

More than 8430ha of central NSW cropping farmland has hit the market, where it is expected to receive significant offers. See the details.

The ASX-listed farms are selling their Timberscombe Aggregation for $70 million.

The ASX-listed Duxton Farms is set to offload more than 8000ha of central NSW farmland, offering the Timberscombe aggregation to the market.

At their AGM last month the company said LAWD would run a campaign to sell the 8432ha dryland cropping operation, 30km northeast of West Wyalong, NSW.

The Timberscombe aggregation is the largest and most valuable property in Duxton Farms’ $158 million portfolio, valued at $59 million earlier this year, following an 11.3 per cent increase in land value year-on-year.

It is understood the aggregation as a whole is expected to receive offers worth about $70 million.

The Timberscombe aggregation equates to about a third of the company’s central NSW farmland, which comprises 23,406ha, 10,035ML water entitlements and 6798ML of leased water entitlements in total.

The aggregation has been a part of Duxton Farms since its listing in 2018 and has been a component of the Duxton funds management group portfolio of projects in some form for more than 15 years.

The Timberscombe comprises 8430ha near West Wyalong, in central NSW.

“Timberscombe is considered as one of the largest and most desirable contiguous dryland broadacre properties in southern New South Wales and has been a stalwart of the company’s winter cropping programme for the past six seasons,” the company said in a statement.

While Duxton Farms’ land, water and structural assets increased by 10.1 per cent year-on-year, the company recorded its largest ever net loss last year of $10.1 million.

The company suffered a 60 to 80 per cent reduction to its winter harvest and a complete loss of its summer crop following major flooding in central NSW last spring.

When announcing the intention to sell Timberscombe aggregation, the company said it was overexposed in the central NSW region, and would redeploy the Timberscombe sale capital into existing projects in the NT and Victoria.

“The sale is being undertaken as part of the board’s strategy to rebalance Duxton Farms’ portfolio toward growth projects that serve to expand and broaden the company’s exposure to the Australian agricultural sector and that are better suited to its current size and composition,” they said.

Earlier this year, Duxton Farms exercised its option to purchase Piambie Farms at Natya in Victoria’s Sunraysia region.

Duxton paid more than $6.4 million for the property following the acquisition of the 241ha Glenn Innes portion in December last year.

The aggregation will become an irrigated pistachio orchard with 130ha of greenfield plantings completed in August.

In addition to its central NSW and Victorian ventures, Duxton also leases the 141,000ha Mountain Valley Station in the Northern Territory.

The company is in the process of stocking the station, while in the long term it is looking into growing cash crops including cotton.